Gold Bearish Trend Analysis: New Bottom May Be Forming
Updated
Welcome to all gold traders!
After a volatile week with a series of news, today's gold price has gradually shown a downward trend. At this time, gold is fluctuating around the 2670 threshold and has not yet found the momentum to escape the downward trend.
Many people must be wondering: Why did the gold price drop so sharply?
Regarding the international market situation:
The main reason for the recent gold sell-off is the strengthening of the USD, which increased sharply after a series of remarkable economic news. In particular, bond yields increased due to concerns about new tax policies and tax cuts that could push inflation back. Investors reacted to the possibility that the Fed would maintain tightening policies for longer, putting great pressure on gold prices.
Gold Technical Analysis and Forecast:
On the technical chart, gold has broken below both the 34-day and 89-day exponential moving averages (EMA), which is a clear signal that the downtrend could continue.
Currently, gold is hovering around the support level of 2665, while the nearest resistance level is at 2680. If the support level of 2665 is broken, there is a high possibility that gold will continue to fall to lower levels, such as the bottom of 2643 and even deeper.
After a volatile week with a series of news, today's gold price has gradually shown a downward trend. At this time, gold is fluctuating around the 2670 threshold and has not yet found the momentum to escape the downward trend.
Many people must be wondering: Why did the gold price drop so sharply?
Regarding the international market situation:
The main reason for the recent gold sell-off is the strengthening of the USD, which increased sharply after a series of remarkable economic news. In particular, bond yields increased due to concerns about new tax policies and tax cuts that could push inflation back. Investors reacted to the possibility that the Fed would maintain tightening policies for longer, putting great pressure on gold prices.
Gold Technical Analysis and Forecast:
On the technical chart, gold has broken below both the 34-day and 89-day exponential moving averages (EMA), which is a clear signal that the downtrend could continue.
Currently, gold is hovering around the support level of 2665, while the nearest resistance level is at 2680. If the support level of 2665 is broken, there is a high possibility that gold will continue to fall to lower levels, such as the bottom of 2643 and even deeper.
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